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Certified Credit Consultant Reveals 4 Tips on How to Improve a Credit Score

Los Angeles, CA -- (SBWIRE) -- 04/30/2013 -- Not understanding the five elements that make up your FICO score could have a tremendous negative effect on getting approved for credit. For example, if you are 30 days late within the first two years of having an account, this could bring your credit score down by 30 points. In return, you could get denied for a home loan based on that single 30-days-late indication.

Your paying habits are 35 % of your credit score. If your late payments are recent, it will lower your score more than if you were behind in the past. So make sure you are current with the creditors and always pay your bills on time.

The balance on your accounts is 30% of your available credit score. Also, if you make a big purchase and want to maintain the 10% balance level, make sure you pay off your purchased item before your bill cycles. If you pay after the cycle, the lender will report your high balance.

The amount of time you’ve had your credit makes up 15% of your credit score. If you have too many accounts and you want to close a few, close the accounts that are new with low limits.

How to improve my credit score tip 4-New credit:

New credit makes up 10% of your score. The FICO model looks at how many accounts you’ve applied for lately, as well as any fresh accounts you have opened. So, try not to apply for more than two new accounts per year.